OPEC, the future is probably worse than you thought

Facing a fall in demand, rise in US inventory and a economic growth slowdown, can the OPEC+ sustain its co-operation?

Saudi Arabia and Russia are on a collision course.

On Friday, the International Energy Agency will publish its first forecast of oil market balances in 2020. The headline figures will probably show stockpiles rising next year if the OPEC+ producer group does not extend output cuts into a fourth year.

But their pain may not end there. Growing signs that demand growth is turning out to be much weaker than expected may require producers to make even deeper cuts. If so, that could spell the end of the partnership between Saudi Arabia and Russia on oil policy.